Don’t assume that sticking to the status quo on your auto insurance policy is always the right move.
Most important points:
- Shopping for new auto insurance can make it possible to lower premium prices.
- It can also be important to purchase new insurance policies to maintain proper coverage if a driver’s circumstances change.
- There are six life changes, after which financial expert Dave Ramsey recommends buying new insurance.
Buying auto insurance is important to protect against capital loss and to comply with the law. But while motorists assume they can buy coverage once and never think about it again, that’s just not the case. In fact, it is important to regularly look for cover.
Specifically, there are six situations where financial expert Dave Ramsey believes motorists should shop around to see if switching insurance makes sense. This is what they are.
Six situations to look for new car insurance
Ramsey suggests looking around and comparing auto insurance policies under the following six circumstances:
- after moving
- After purchasing a new vehicle
- After getting married
- After being divorced
- After adding a teen driver to a policy
- After a loved one who was on the policy died
There is an important reason why Ramsey suggests that these life events should trigger a comparison of insurance options. “Sometimes major life events affect your premiums — and the company that gave you the best deal before isn’t,” explains Ramsey.
How to Shop for New Insurance
While it may seem like a hassle to add car insurance shopping to the list of things to do after a major life change, such as moving house or divorce, the reality is that it’s pretty easy to explore the options available to you. to watch.
Consumers looking for a policy can check their current coverage to make sure it is adequate and no additional protection is required. “If you double check your current policy now, you’ll know what to look for when looking for a new one,” explains Ramsey. “After all, it’s pretty hard to buy something if you don’t even know what you need.”
After reviewing current coverage, drivers should think about what types of asset protection they need and whether they should add additional types of auto insurance, such as collision insurance or increased liability coverage. Ramsey recommends having at least $500,000 in liability protection, even though the state-required minimums are much lower.
Armed with the information about what types of insurance to buy, consumers can compare quotes from multiple insurers online quite quickly. It’s easiest to do this using a car’s VIN number, as insurers can automatically look up a lot of information about the vehicle when drivers provide this identification number. Drivers seeking coverage should also have details of their own accident history and the driving history of others covered by the policy.
After getting quotes for coverage from about six to 10 insurers, motorists can make a decision about which company will provide all the coverage currently needed for the best possible premium.
Some motorists will find that this is a different insurer than before when they compare coverage after the major life events Ramsey mentioned, while others will discover that it still makes sense to stick with their existing insurer. The only way to know if a change is necessary due to changing living conditions is through the comparison shopping process to explore all the options available.
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